Question : Production of Coal from Coal Blocks

(a) the quantum of coal produced from each of the coal blocks auctioned to private/ foreign companies along with the coal blocks likely to be auctioned to the non-regulated sectors and the revenue likely to be earned therefrom;
(b) whether the Government proposes to provide the short-term coal linkages to the central and state public sector units;
(c) if so, the details thereof along with the efforts made by the Government to ensure the transpareny in the auction;
(d) whether the State-owned Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) proposes to auction certain portion of production if so, the details thereof; and
(e) whether the e-auction of Schedule II and Schedule III coal mines require CIL to allocate linkages through a market-based mechanism, if so, the details thereof along with the status of allocation?

MINISTER OF STATE (I/C) FOR COAL, POWER, NEW & RENEWABLE ENERGY
(SHRI PIYUSH GOYAL)

(a): Of the 31 coal mines successfully auctioned, 6 coal mines have commenced production of coal. Company wise production of coal from April, 2015 to February, 2016 from these 6 coal mines is as under:-
S.No. Coal Mine Successful Bidder Production of Coal (Million Tonne) (Provisional data)
1. Amelia North Jaiprakash Power Ventures Limited 2.80
2. Sarisatoli CESC Limited 2.03
3. Talabira I GMR Chhattisgarh Energy Limited 0.45
4. Belgaon Sunflag Iron and Steel Co. Limited 0.14
5. Chotia Bharat Aluminium Company Limited 0.07
6. Gare Palma IV/4 Hindalco Industries Limited 0.04

Further, the revenue likely to be earned from the coal blocks likely to be auctioned to the non-regulated sector in the future cannot be estimated as it would depend on the bid price received.


(b) & (c): The policy guidelines for grant of Bridge Linkage to Central/State/Public Sector Power Plants which have been allotted Schedule-III coal mines under the Coal Mines (Special Provisions) Act, 2015 and coal blocks allotted under the Mines and Minerals (Development and Regulations) Act, 1957 have been notified on 08.02.2016. Bridge Linkage shall act like a short term linkage to bridge the requirement of coal by a Government Sector Power Plant in the intervening period of three years after date of allocation of coal mine/block. There is no element of auction in grant of Bridge Linkages. For the non-power sector i.e. linkage auction for Central Public Sector Enterprises (CPSEs), the existing Fuel Supply Agreements (FSAs) with CPSEs may continue to be renewed on expiry. However, in case CPSEs require linkages over and above the existing linkage, they may participate in auction of linkage.
(d): Around 10% of production of Coal India Limited is put up in Spot & Forward E-auction on regular basis. All future allocations of linkages/Letter of Assurances (LoAs) for non-regulated sector viz. Cement, Steel, Sponge Iron, Aluminium and others [excluding Fertilizers (urea) Sector], including their Captive Power Plants shall be auction based. To start with, the quantities corresponding to FSAs of non-regulated sector {except CPSEs and Fertilizer (urea)} maturing in 2015-16 onwards and 25% of incremental Coal India Limited / Singareni Collieries Company Limited’s production during 2015-16 over 2014-15 shall be put up for auction.
(e): No, Madam.
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